Evening star. [volume] (Washington, D.C.) 1854-1972, 1887-12-22
BUCKET-sHOP SPECULATION.
CONFESSIONS OF A CHAR-wARNKR WHO HxPxl
MRNTs WITH "BRoKIRAak"

From the Springfield Republican
There is vast difference between Legitimate
stock brokerage and bucket-shop speculation
There is Just as much difference as there IL II
preaching sermons and betting on what the text
Will be next sunday. Yet there never was a buck
et-shop In the world but maintained that they die
legitimate business in stocks although IT is very
seldom that one ever sees certificate OF stock de
hvered, and one who takes shares into q shop. OF
as they choose to call them stockholders ONCE, 4,
quite apt to be looked on as a green The bucket
shop men In Boston and New York have been
forced to suspend operations in their cities princ
pally through the efforts Of the stock exchange
and are depending on the business OF theil
"branches' In the smaller places to keep them
alive the reason that they have been closed In the
larger cities is that men could make nearly as
much profit In the bucket-shops as II they In.
vested with the brokers, and at the same time
would require but small amount OF capital The
brokers said that this was injuring their business,
and refused to furnish quotations and complained
or the keepers to the police. But although the
quarters, they could still secure quotations fol
the country onlces, which the brokers did not
bother about, as those who speculate at the
smaller places are not those who would deal In
legitimate stocks under any consideration and
therefore their business was not affected.
y, Few people Know what 6ucket-shopi IS It makes
no boisterous persons around Each shop has It's
regular class Of customers, and those living In the
same OlOCk nave very misty IDEA OF what Is go
ing on in the place. They hear the click of tee-
graph instrument, and occasionally see men going
out and In, but hear no loud talking, and are moi
reason for this is that the bucket-shOp men keep
such good hours. The stock exchange begins bust
ness at 10 O'Clock and closes at O'Clock, and the
Ducket-ShOpS depending on the quotations, as
much as booksellers depend on the result OF horse
races to carry on their business, cannot do much
s S Up
them, II is no wonder that men 60 their way and
leave them undisturbed. Another reason is that
while many man is wrecked financially in these
places very few sensations result from them.
Boys, as rule, do not frequent them, principally
perhaps because the shop hours are the hours they
have to work, and too much capital Is required To
admit Of loafers participating As rule the places
are very Misunderstanding affairs They are
usually located In the side or back room OF some
business block upstairs. The room is plainly, but
not poorly, furnished. A large blackboard, where
the quotations are bulletined, covers the wall on
one or two sides Of the room. The boards are
ruled, and the class and name OF the stock is
painted at the top. The floor is usually carpeted,
and the room furnished according to the class
OF customers. But there is always large desk In
one corner where the proprietor transacts his
business Then there are lot OF chairs scattered
about the other side OF the room, table where
the operator takes the quotations, and sends In
the "Orders," and, perhaps, a safe and a few pic
lures. The force OF employees vary from only the
proprietor and operator to those having clerk or
two and a chalk boy, who takes the quotations on
slips OF paper from the man at the telegraph
tables and writes them In their places on the
board.
The customers sit for the most part with solemn
faces, which wear sort OF hopeless appearance,
their hands claSped over their knees, and watch
the changes which come In three or four minute
In the buster portions OF the day, and 1t takes a
very lively market or a small panic to produe any
thing like visible excitement, although there Is
enough suppressed excitement there all time time.
When these men think they can forecast a turn OF
the market, they go TO the proprietor and tell him
to buy or sell for them certain numbrr OF shares
OF certain stock, and place in his hands a
"margtn" varying from TO 5 per cent or the par
value or the Stock and receive his ''cert1hcate'
For instance If western Union is quoted at IS and
that stock is going to jump on point he tells the
proprietor to sell ten shares OF Western Union for
him. or course the "brOker" knows he hasn't got
any western Union stock, and wouldn't know
what 1t was II he saw II, but in the order goes,
presumably, and is sold on the next quotation. In
customer could close out his 'deal" and receive In
return the amount Of his margin, less One-fourth
OF per cent, which the broker retains as com
mission, and $40 In addition as profit. AS has
been said these selfcOnStituted brokers would an
grlly repudiate any assertion that they do not
really deal In stocks, but they are at loss TO
plain how they are able to telegraph to New York
TO the broker whom they advertise TO be connected
with, sell the stock and get return In three or
four minutes Then, too, they make sales half or
three-quarterS OF an hour after the exchanges are
closed. II is no more or less than betting on the
quotations.; just as honorable as any betting and
not a Jot more SO. There are men In this city who
have sunk thousands or dollars in the "buckets''
at home. There are men who spend their time
watching their small sums OF money vanish who
have every call OF duty TO make them earn money
for their families. IL will be interesting to see
the night against these institutions in the larger
cities will spread into tie country and attack the
places which are just as legitimate as a faro bank.